Post by
TruthAboutHip on Jul 13, 2018 10:16am
Don't get too excited
These supply agreements are not a guarantee that HIP will sell even one gram of cannabis. They are MOU's and as such not even legally binding. I am glad that they are involved in these deals but this is not the big news I have been expecting since they announced there would be BIG NEWS after the AGM.
The AGM was a month and a half ago. Maybe you shouldn't promise things to investors when you can't deliver within a reasonable amount of time ? Again I want to stress that they are still not even producing any cannabis at the Niagara facility. So while having supply deals is great you need product in hand to supply with and HIP seems to have forgotten about this very important piece to the puzzle.
Just take into consideration the fact that they have lost one harvest already since the anouncement on April 2 that they would be cultivating in April. If they had have done what they promised the image of the company would be miles better. However it is becoming all too clear there is nothing going on behind the screen that Jay Wilgar has put up of "sticking to the plan".
So if you take the fact that there could be 4 harvests per year and the maximum output for the retrofit facility is 12,500 kilos per year that means they have lost around 3,125 kilos of product due to inaction. This is inexcusable ! This is a potential loss of 3,125,000 grams at a conservative $5 per gram = $15,625,000 in lost income. Does this sound like they have a plan ?
If instead of diluting the stock with more bought deals they had have gotten down to business we would be up $15 million in potential earnings and 69 million less shares in dilution. Also don't forget about potential further dilution should the warrants get exercised. If that is the case then add at least another 90 million share to the pot.
So according to my calculations HIP has currently less than 1,000 kilos of cannabis at present and this has apparently not changed since January according to their own statements. In fact Jay Wilgar had said they had twice that amount in January and later their financials announced the actual amount which was only half as much 4 months later.
None of this is acceptable and investors should be outraged.
Comment by
Eigen337 on Jul 13, 2018 11:08am
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Comment by
OSKARtheRED on Jul 13, 2018 11:09am
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